Guyana’s crude oil output plunged from early May’s level due to some technical problems which cannot be resolved immediately due to the health protocols imposed in restricting the spread of coronavirus.
Month-on-month, Guyana’s production at the moment is down by 65% to 27,500 bpd.
Some technical problems are reportedly occurring in the compression equipment which likely would have to be flown out of the country for repairs.
Guyana’s production comes only from the Liza field in the deepwater Stabroek block. Operator ExxonMobil has not confirmed the production slump but said that travel restrictions, along with the safety and isolation protocols related to the pandemic have delayed repairs.
The country’s July production target of 120,000 bpd and the lift of its third 1 million barrels of rude entitlement in the month are at risk. The energy department is scheduled to issue a shortlist of the bidders selected to make technical and financial proposals for a one-year contract to market the government's share of crude by June 25.
The technical problem and the possibility of government change would likely shake Guyana’s future oil policy.
